Proposed federal water rule may encourage system consolidation to meet drinking water standards
(UI) – On Thursday, the Biden administration proposed a new EPA rule requiring states to evaluate and improve water systems that repeatedly violate drinking water standards or face significant financial challenges, according to E&E News.

This rule will necessitate state regulators to devise plans to enhance these water systems, potentially through consolidating multiple providers or transferring failing systems to new owners. The plans will be subject to EPA oversight.
The proposal, which follows a 2018 Congressional directive, aims to address chronic noncompliance with federal drinking water regulations and standards. There are over 50,000 community water systems in the U.S., many of which are small, underfunded, and facing declining customer bases. Consolidation could help spread costs and resources across larger populations, which is crucial for complying with new regulations on lead and PFAS chemicals.
However, consolidation is controversial, raising concerns about water affordability, equity, and local control. The EPA proposes that states identify alternatives to restructuring based on the specific characteristics of the water systems and communities.
States must explain how restructuring would improve service and affordability, and hold public meetings for community input before approving any restructuring plans.
While many states already have programs to incentivize consolidation, the new rule would introduce nationwide incentives, including liability protection for systems acquiring failing ones.
Despite support for the proposal, challenges remain, such as resource constraints for small systems to provide necessary data and legal authority for state regulators to enforce consolidations.
Increased government oversight and careful consideration of affordability, particularly for low-income communities served by failing water providers, are essential. The goal is to ensure safe and affordable drinking water for all communities, leveraging consolidation where beneficial.
This story was originally reported by E&E News.
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